Highlights

  • Uniti shows 1,277.64% one-year basic EPS growth, a P/E of 1.57 and PEG of 0.84.
  • Second quarter revenues and sales were $909.7 million against $300.7 million a year earlier.
  • Kinetic ended the quarter with approximately 603,000 consumer fiber subscribers and 2.1 million premises passed.
  • Uniti completed a $1.1 billion Kinetic ABS offering on July 15, 2026.

Uniti (NASDAQ:UNIT) shares were trading at USD 4.84 on October 28, 2026, down 4.72%, alongside one-year basic EPS growth of 1,277.64%, a trailing twelve-month P/E of 1.57 and an expected-basis PEG of 0.84, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the digital infrastructure company completed a $960.1 million Kinetic ABS offering on January 30, closed a $1.1 billion second Kinetic ABS offering on July 15, and reported second quarter 2026 revenues and sales of $909.7 million on July 30.

Based in Little Rock, Arkansas, and incorporated in Delaware, Uniti describes itself as a digital infrastructure company with approximately 240,000 fiber route miles across 47 states. It serves more than 1.0 million customers. Operations are organized into three segments: Kinetic, which serves residential, business and wholesale customers where Uniti is the incumbent local exchange carrier; Fiber Infrastructure, which provides bandwidth and fiber leasing to carriers and cloud providers; and Uniti Solutions, which offers software and network connectivity to business customers.

Growth: Second Quarter Revenue, Fiber Segments and Net Loss

Total revenues and sales were $909.7 million in the second quarter against $300.7 million a year earlier. The company stated that the August 1, 2025 merger with Windstream accounted for 87% of second quarter revenues and sales, with the acquired Windstream operations generating $795.9 million.

Net loss was $155.9 million against a net loss of $10.7 million, and $226.2 million for the six months against net income of $1.5 million. Basic and diluted loss per share were $0.68 against $0.07 for the quarter. Operating income was $32.2 million against $145.0 million.

Kinetic service revenues were $501.9 million with a contribution margin of $228.4 million, Fiber Infrastructure service revenues were $216.0 million with $121.8 million, and Uniti Solutions service revenues were $180.9 million with $91.8 million. Adjusted EBITDA, a non-GAAP measure, was $357.1 million against $242.5 million. Kinetic had approximately 603,000 consumer fiber subscribers, a 29% penetration rate.

Valuation: P/E of 1.57, PEG of 0.84 and Management Commentary

The P/E ratio of 1.57 is measured on trailing twelve-month earnings, and the PEG ratio of 0.84 on expected growth. Cash provided from operating activities was $339.4 million for the first six months against $183.6 million. Total shareholders' equity was $161.5 million at June 30, 2026 against $380.4 million at December 31, 2025.

On its second quarter call on July 30, Chief Executive Officer Kenneth Gunderman described 2026 as an inflection year, and Chief Financial Officer Paul Bullington said monetizing $500 million to $1 billion of noncore assets over the next 12 to 36 months would have a negligible effect on adjusted EBITDA.

Capital and Balance Sheet: ABS Notes, Term Loan Offers and Liquidity

Cash and cash equivalents were $608.9 million at June 30, 2026 against $53.5 million at December 31, 2025. Available borrowing capacity under the senior secured revolving credit facilities was $838.1 million, with no revolver borrowings outstanding. Notes and other debt, net were $10,636.6 million, and the company stated that it was in compliance with its debt covenants.

In the first half Uniti issued $1,000.0 million of additional 8.625% unsecured notes and $960.1 million of Kinetic ABS 2026-1 Notes, and repaid the $500.0 million Windstream Term Loan. The July 15 Kinetic ABS 2026-2 Notes brought Kinetic ABS notes outstanding to $2.1 billion. Uniti intends to use $500.0 million of the net proceeds to repay senior secured debt through a term loan prepayment offer of up to $167.8 million, of which $19.8 million was repaid on July 30, and asset sale offers for up to $332.2 million of secured notes.

Disclosed Risks and Outlook: Interest Costs, Customer Bankruptcies and 2026 Guidance

Interest expense, net was $195.6 million against $128.8 million, which the company linked to approximately $4.6 billion of additional long-term debt after the merger and refinancings. Operating income decreased, which the company attributed primarily to the absence of Windstream leasing revenues after August 1, 2025 and higher stock-based compensation. The provision for estimated credit losses rose by $12.1 million, which the company attributed primarily to customer bankruptcies in the second quarter. Uniti met the 40% RDOF completion milestone in a number of states, while permitting delays in other areas led to a shortfall that it reported to the FCC on January 15, 2026.

On the July 30 call, management raised its 2026 target for new fiber homes constructed to 475,000 to 525,000. Kinetic net CapEx is expected at approximately $1.27 billion at the midpoint, up $100 million. Consolidated revenue and adjusted EBITDA are expected at approximately $3.655 billion and $1.475 billion at the midpoint. Management said some dark fiber lease deals expected in the fourth quarter could slip into early 2027.